In this article, we will examine the Michael Burry Stock Portfolio: 6 Stocks to Buy.
Michael Burry needs no introduction on Wall Street. He is best known for accurately predicting the 2008 financial crisis and betting against the US housing market, from which he went on to make a fortune. The legendary investor was once again making waves by selling off numerous positions through his fund, Scion Asset Management, in May.
Burry slashed the number of stocks in his portfolio to roughly half. He exited Chinese stocks and placed massive bets against the US tech sector in response to President Donald Trump’s vicious trade war. The selloff appears uncalled for as the overall market has rallied off the April lows, powering to record highs, driven by blockbuster gains in the technology sector.
Amidst the portfolio adjustments, investors continue to monitor the legendary investor’s strategy, as he has consistently demonstrated a keen understanding of the markets. Burry is known for his contrarian investment style that often entails going against the crowd. Likewise, he is a value investor, always looking for undervalued companies with strong fundamentals.
The strategy enabled him to generate $100 million personally at the height of the housing crisis in 2008, and he also ultimately delivered more than $700 million to those invested in his funds. Scion Asset Management boasts of a solid 11.01% 1-year return and 113.55% return over the past five years.
While focus remains on tech stocks amid the artificial intelligence boom, Burry has tweaked his portfolio, opting to focus on plays in the healthcare, retail, and biotechnology sectors. Likewise, he has resorted to call and put options on some of the big names on Wall Street as part of a diversification strategy.
Michael Burry of Scion Asset Management
Our Methodology
We scanned Scion Asset Management’s portfolio and focused on the firm’s stock holdings as of the end of the second quarter of 2025 and detailed how popular they are among elite hedge funds. We have also detailed the stock’s performance from the end of the second quarter (June 30, 2025) to October 9, 2025 to provide insights into whether Burry was right or wrong for betting on the stock. Finally, we ranked the stocks in ascending order based on Scion Asset Management’s equity stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Michael Burry Stock Portfolio: Stocks to Buy
6. UnitedHealth Group Incorporated (NYSE:UNH)
Scion Asset Management Equity Stake: $6.24 Million
Stock Performance (end Q2-October 9): 16.58%
Number of Hedge Fund Holders: 159
UnitedHealth Group Inc. (NYSE:UNH) is one of the best stocks in Michael Burry’s stock portfolio. On October 3, the company’s shareholders proposed the adoption of an independent board chair. The position is currently held by Stephen Hemsley, Chief Executive Officer.
While Hemsley has served as board chair since 2017, he assumed the role of CEO in May following Andrew Witty’s resignation. “Now, a single person holds both roles — which is as far as it gets from the independent oversight shareholders so critically need,” the proposal says.
The push for an independent board chair comes as the health insurer tries to regain the confidence of shareholders. The company has come under shareholder pressure following two straight quarters of earnings misses. It has also revised its 2025 Outlook due to soaring medical costs and shortfalls in government-backed plans.
UnitedHealth Group Incorporated (NYSE:UNH) is a health care company that offers consumer-oriented health benefit plans and services. It also provides care delivery, care management, wellness, consumer engagement, and health financial services to patients.
5. MercadoLibre, Inc. (NASDAQ:MELI)
Scion Asset Management Equity Stake: $7.84 Million
Stock Performance (end Q2-October 9): -14.78%
Number of Hedge Fund Holders: 116
MercadoLibre Inc. (NASDAQ:MELI) is one of the top stocks in Michael Burry’s stock portfolio. On October 3, JPMorgan reiterated a ‘Neutral’ rating on the stock but cut the price target to $2,600 from $2,700. The cut comes amid concerns that the company faces competitive pressures in Brazil, which could trigger an earnings miss in the third quarter.
The company is reportedly facing competition from Amazon and Shopee. To start, Amazon has intensified its efforts in the country with the establishment of new logistics facilities and pickup locations. In addition, the US e-commerce giant has waived Fulfillment by Amazon (FBA) fees, aiming to take on MercadoLibre.
“We recap recent developments in the Brazilian e-commerce competitive environment, which reinforce our view that growth should come at a higher cost to MELI in the coming years,” JPMorgan analysts wrote.
Amid the competitive pressure, JPMorgan expects the company to deliver $7.44 in Q3 revenue, which would be 3% above consensus estimates. Nevertheless, it forecasts EBIT of $750 million, which would be below $811 consensus estimates. Earnings are also expected to average $477 million, compared to the previously expected $551 million.
MercadoLibre Inc. (NASDAQ:MELI) is a Latin American technology company that provides e-commerce, fintech, and logistics solutions to individuals and businesses. It operates a large online marketplace for buying and selling goods. Its payment platform, Mercado Pago, enables various online and offline transactions and offers financial services.
4. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Scion Asset Management Equity Stake: $7.88 Million
Stock Performance (end Q2-October 9): 5.4%
Number of Hedge Fund Holders: 73
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the top stocks to buy in Michael Burry’s stock portfolio. On October 6, the company announced it is poised to incur an $83 million in-process research and development (IPR&D) charge.
The charge is related to an $80 million up-front payment made to Hansoh Pharmaceuticals Group Company Limited as part of a 2025 license agreement. In addition to up-front, opt-in, and some development milestone payments, acquired IPR&D charges may also include milestone payments and premiums paid on equity securities associated with licensing and partnership agreements.
The charge is expected to reduce the company’s GAAP and non-GAAP net income per diluted share by about $0.68 in the third quarter.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company that discovers, develops, manufactures, and commercializes medicines for serious and rare diseases, including eye diseases, cancer, neurological conditions, inflammatory and allergic diseases, and cardiovascular diseases.
3. Bruker Corporation (NASDAQ:BRKR)
Scion Asset Management Equity Stake: $10.30 Million
Stock Performance (end Q2-October 9): -14.63%
Number of Hedge Fund Holders: 42
Bruker Corporation (NASDAQ:BRKR) is one of the top stocks in Michael Burry’s stock portfolio. On October 3, the company confirmed it had received new orders for advanced Nuclear Magnetic Resonance instrumentation. The $10 million order is from the New York Structural Biology Center (NYSBC), the University of Delaware, and Northwestern University.
The advanced Nuclear Magnetic resonance instrumentation is tailored to enable research institutes to pursue breakthroughs in drug discovery and disease biology disciplines. The system comes with a fast NMR sample shuttle system, a magnetic tunnel, and an electromagnetic field cycling coil FCC.
The NMR Relaxometry system enables measurements of spin-lattice relaxation rate constants for 1H, 15N, 13C, and other spins in biological macromolecules. It also comes with proteins and nucleic acids, over the range of magnetic fields from 100 µT to 16.4 T.
“Critically, this instrumentation opens new time regimes for elucidating dynamics of these molecules and enables research ranging from understanding fundamental biological processes in normal and pathological states to discovery of potential new drugs for treatment of cancer and other diseases,” said Arthur G. Palmer, Professor of Biochemistry and Molecular Biophysics at Columbia University and Director of NMR Spectroscopy at NYSBC.
Bruker Corporation (NASDAQ:BRKR) develops, manufactures, and distributes high-performance scientific instruments and analytical solutions used in life sciences, applied sciences, and industrial applications, enabling customers to explore life and materials at the microscopic, molecular, and cellular levels. Its products include nuclear magnetic resonance (NMR) spectrometers, mass spectrometry systems, atomic force microscopes, and preclinical imaging systems.
2. Lululemon Athletica Inc. (NASDAQ:LULU)
Scion Asset Management Equity Stake: $11.88 Million
Stock Performance (end Q2-October 9): -26.70%
Number of Hedge Fund Holders: 55
Lululemon Athletica Inc. (NASDAQ:LULU) is one of the top stocks in Michael Burry’s stock portfolio. On October 6, an analyst at Jefferies reiterated an ‘Underperform’ rating on the stock and cut the price target to $120 from $150.
The price target cut comes amid concerns that the company is facing the same challenges that Under Armour faced between 2015 and 2025, including a decline in market share. In addition, the company is struggling with fashion shifts and strategic missteps.
Amidst the concerns, Lululemon still boasts of sky-high sales per square foot and margins compared to the mall average and its peers. Additionally, consensus on Wall Street is that the company is well-positioned to deliver sales growth in 2026.
Lululemon Athletica Inc. (NASDAQ:LULU), manufactures and sells athletic apparel, footwear, and accessories, particularly known for its premium-quality yoga, running, and training wear. It sells its products through its own retail stores and direct-to-consumer online channels, offering a range of items for both women and men.
1. The Estée Lauder Companies Inc. (NYSE:EL)
Scion Asset Management Equity Stake: $12.12 Million
Stock Performance (end Q2-October 9): 22.07%
Number of Hedge Fund Holders: 48
The Estée Lauder Companies Inc. (NYSE:EL) is one of the top stocks to buy in Michael Burry’s stock portfolio. As of October 8, Estée Lauder Companies is one of the stocks flying high, with a 25% year-to-date gain better than the 14% gains for the S&P 500.
The impressive run comes as the company establishes itself as a leader in prestige beauty, backed by a portfolio of 25 brands and operations in over 150 countries. It boasts an impressive 74% gross profit margin, which affirms its status as the second-largest player in the $160 billion prestige beauty market.
Amid the impressive run, analysts at Bank of America Securities maintain a ‘Buy’ rating on the stock and a $110 price target. The bullish stance underscores the research firm’s confidence about the company’s recovery in Asia and restructuring plan. The ‘Beauty Reimagined’ plan is also bearing results.
The Estée Lauder Companies Inc. (NYSE:EL) manufactures, markets, and sells prestige beauty products, including skin care, makeup, fragrance, and hair care, under a diverse portfolio of consumer-beloved luxury brands. It focuses on innovation, quality, and end-to-end execution to create transformative beauty products and experiences for consumers in over 150 countries.
While we acknowledge the potential of EL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EL and that has 100x upside potential, check out our report about this cheapest AI stock.
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